Let $C^{\infty}$ be the canonical commutative ring on the set $\{f: \mathbb{R} \rightarrow \mathbb{R} \mid f \text{ smooth}\}$. Let $\mathfrak{m}= \{ f \mid f(0)=0 \}$ a maximal ideal.
Consider the localization at this maximal ideal $A= C^{\infty}_{\mathfrak{m}}$. A local ring with maximal ideal the image of $\mathfrak{m}$ which I will identify with $\mathfrak{m}$.
We want to complete $A$ along the principal ideal generated by the identity $(\operatorname{id})$ and see that $\hat{A} \cong \mathbb{R}[[T]]$ the ring of formal power series.
Here is, what I did. However, there are gaps to fill and I'm not fully sure if everything I did was correct.
a) It is $(\operatorname{id}) = \mathfrak{m}$:
Let $f \in \mathfrak{m}$. Then we can write $f = \operatorname{id} \cdot g$ where $g = f/{\operatorname{id}}$ on $\mathbb{R} \backslash \{0\}$ and $g(0)=f'(0)$. This is certainly continuous, but to see that this is actually a legal factorization, I must see that $g$ is even smooth. Is this clear for some reason? However, I'm not even sure if this fact is true or I need it.
Edit: I just found out that this is in fact a special case of Hadamard's Lemma. I still need to see b).
b) Certainly $\mathbb{R}[[T]]$ embedds into $\hat{A}$ via $T \mapsto \operatorname{id}$. But I don't see why this should be surjective. My intuition tells me, that maybe in $\hat{A}$ functions get identified with their formal Taylor Series around $0$, but I'm not sure if this is true. (I would somehow try to pick presentations of an element in the $(A/(\operatorname{id})^n)$ in the fashion of a)).